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Wednesday, 22 August 2012

Funds to NABARD

To strengthen the capital base of National Bank for Agriculture and Rural Development (NABARD) and thereby enhance its borrowing capacity to meet its developmental mandate, the Government of India has approved the proposal for augmenting its capital by infusing equity of Rs 3,000 crore. The Government has released Rs 1000 crore in 2011-12. In 2012-13, so far Rs 500 crore has been released. The Interest Subvention Scheme is being implemented by the Government of India since 2006-07 to make short-term crop loans upto Rs. 3 lakh for a period of one year available to farmers at the interest rate of 7 percent per annum. Under the Scheme, Cooperative Banks and Regional Rural Banks are being provided refinance through NABARD so as to lend the farmers at 7% p.a. The rate of refinance to Cooperative Banks and Regional Rural Banks was 4.5% in 2011-12. This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to a question in Lok Sabha today.